7 C.F.R. § 1147.108

Current through September 30, 2024
Section 1147.108 - Reimbursement calculation
(a) For each eligible dairy product donated by an eligible dairy organization with an approved Dairy Donation and Distribution Plan, the amount of reimbursement under § 1147.106 for the donated eligible dairy product shall be the sum of the values of the input cost, the manufacturing cost, and the transportation cost.
(1) The input cost shall be the monthly Federal Milk Marketing Order minimum classified value pursuant to 7 CFR 1000.50 of the fresh fluid milk product (raw milk, skim milk, cream, or concentrate fluid product) or fluid milk equivalent of the bulk dairy commodity product used to make the donated eligible dairy product pursuant to 7 CFR 1000.40 for the month of processing.
(2) The manufacturing cost shall be the manufacturing allowance, on a hundredweight basis, pursuant to 7 CFR 1000.50 for the milk used to produce the donated eligible dairy product pursuant to 7 CFR 1000.40 -
(i) If a Class I product, the simple average of the Class III and Class IV manufacturing allowances applies;
(ii) If a Class II product, the Class IV manufacturing allowance applies;
(iii) If a Class III product, the Class III manufacturing allowances applies; or
(iv) If a Class IV product, the Class IV manufacturing allowances applies.
(3) The transportation cost shall be determined by the following:
(i) The published average U.S. Energy Information Administration average U.S. diesel fuel price for the month the donation was made;
(iii) The fuel economy rate of 6.1 miles per gallon.
(iii) The fuel economy rate of 5.5 miles per gallon.
(b) Reimbursement, on a per hundredweight basis, made pursuant to paragraph (a) of this section may not exceed the Class I price pursuant to 7 CFR 1000.50 , 1000.52 , and 1006.51 for Dade County, Florida.

7 C.F.R. §1147.108

86 FR 48898, Sept. 1, 2021
86 FR 48898, 9/1/2021; 88 FR 57872, 8/25/2023